Criminal Revision No. 120 of 1942. Case: Emperor Vs Osman Chotani. High Court of Bombay (India)

Case NumberCriminal Revision No. 120 of 1942
JudgesJohn Beaumont, Kt., C.J. and Sen, J.
IssueIndian Income Tax Act (XI of 1922) - Section 54
CitationAIR 1942 Bom 289, 1942 (44) BomLR 618, 1942 (10) ITR 429 (Bom)
Judgement DateApril 15, 1942
CourtHigh Court of Bombay (India)

Judgment:

Beaumont, C.J.

  1. This is a revision application raising a point of some general importance.

  2. Three persons are being charged with the offence of cheating, the general nature of the case alleged against them being that accused Nos. 1 and 2 having purchased steel of an inferior quality at a cheap price in the bazaar, resold it through the instrumentality of accused No. 3 to a Government Department at a greatly enhanced price, falsely representing the steel to be of a superior quality.

  3. We are told that many of the books of accused No. 1, which might be relevant, are not forthcoming. In order to remedy this defect, the investigating officer served a summons on the Income Tax Commissioner of Bombay, under Section 65 of the Bombay City Police Act, requiring him to produce certain documents lodged by accused No. 1 with the Income Tax Department in connection with his return for Income Tax. The Commissioner of Income Tax declined to produce the documents in question, considering himself precluded from so doing by the provisions of Section 54 of the Indian Income Tax Act, as he clearly was. Thereupon the police authorities proceeded under Section 66 of the Bombay City Police Act to carry out a search of the offices of the Income Tax Commissioner, and seized certain documents, which had been lodged with the Income Tax Department by accused No. 1. One of those documents, exhibit Z44, was tendered in evidence by a police-officer before the Chief Presidency Magistrate, who was hearing the charge. The learned Magistrate held that the document was not admissible in evidence. He took the view that Section 54 of the Indian Income Tax Act constituted an absolute bar to the Court considering any of the documents lodged under the Act, and the question is whether that decision is right.

  4. Section 54(1) of the Indian Income Tax Act is in these terms:--

    (1) All particulars contained in any statement made, return furnished or accounts or documents produced under the provisions of this Act, or in any evidence given, or affidavit or deposition made, in the course of any proceedings under this Act other than proceedings under this Chapter, or in any record of any assessment proceeding, or any proceeding relating to the recovery of a demand, prepared for the purposes of this Act, shall be treated as confidential, and, notwithstanding anything contained in the Indian Evidence Act, 1872, no Court shall, save as provided in this Act, be entitled to require any public servant to produce before it any such return, accounts, documents or record) or any part of such record, or to give evidence before it in respect thereof.

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